GECAS has launched a $474 million asset backed securitisation that will acquire 20 aircraft from the lessor.

A Kroll Bond Ratings Agency preliminary report shows that the START II will have three tranches of notes. KBRA rates the $382 million A notes "A", the $69 million B series notes "BBB" and the $23 million C notes "BB", according to the report.

The portfolio, which has a maintenance-adjusted current market value of approximately $598 million comprises of all Airbus and Boeing narrowbodies. The top five lessees are Air China, Juneyao Airlines, Air India Express, Flynas and Ciel Voyage, a subsidiary of Lion Air.

As of 1 March, the weighted average remaining lease term was around 5.9 years, while the average weighted age of the aircraft is 6.6 years.

Deustsche Bank Securities is acting as the lead structuring agent and lead bookrunner, while Natixis is liquidity provider. GECAS is servicer to the portfolio.

GECAS launched its first START transaction in 2018 featuring a new type of equity structure. In return for a fee, Oz Management - an Och-Ziff subsidiary - was engaged as the E-note manager, aiming to enhance reporting on the underlying assets as well as open the book to more diverse capital base.

Source: Cirium Dashboard